Tesla, a manufacturer of electric vehicles, claims that after lowering prices to increase sales, it delivered a record number of cars in the three months ending in June.
In order to compete with other manufacturers in markets like the US, UK, and China, it has reduced prices.
Major Chinese automakers also announced a surge in June sales this past weekend.
Elon Musk, the CEO of Tesla, stated earlier this year that he thought increasing sales at the expense of profits was the "right choice" for the business.
Tesla reported on Sunday that it delivered 466,140 vehicles in the second quarter, an increase of more than 80% from the same period last year.
The company reported that during the same time, vehicle production increased to almost 480,000.
According to Bill Russo, founder and CEO of the advisory firm Automobility, "Tesla has made a strategic decision to be a volume manufacturer." Russo said this to the BBC.
As the price war primarily benefited the higher-volume Model 3 and Model Y, he continued, "this was the main contributor to the sales increase.".
Wedbush Securities' Dan Ives told the BBC that Tesla's price reductions in China were "a smart poker move that was massively successful for Tesla.".
China is Tesla's second largest market after North America.
The company has been lowering prices in the second-largest economy in the world, where it competes with local electric car manufacturers.
Over the weekend, Beijing based Li-Auto said its deliveries had hit an all-time high of 32,575 in June, marking its third consecutive monthly sales record.
Meanwhile, deliveries by Shanghai-based Nio and Guangzhou-based Xpeng jumped to 10,707 and 8,620 respectively during the month.
Tesla has also been grappling with increased competition in other parts of the world, and the impact of higher borrowing costs for customers.
It has responded by cutting prices this year.
In April, Tesla said it had no plans to stabilise the prices of its vehicles, even though repeated price cuts had dented profits.
"We're not 'starting a price war', we're just lowering prices to enable affordability at scale," Mr Musk wrote on his social media platform, Twitter.
At the time Tesla said that its overall revenue had risen by almost a quarter in the first quarter from a year ago, as car sales increased.
However, its profit for the same period dropped by 24 percent, because of price cuts and higher costs of raw materials and other commodities.
The company is due to report its financial results for the second quarter on 19 July.
